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TPU shale pipe recover
Updated: 2018-01-02 16:56 Source: PUWORLD share:

Growth of TPU in pipe industry in 2017 is not significant, which is limited to the continuous saturation of downstream pneumatic pipe industry. Low-price competition is particularly fierce, unable to support the growth of TPU with the industry being matured.

data source : orisage

data source : orisage

In recent two years, with the rising of oil prices, domestic shale pipe industry continuously recovers. Some market players have got a point between shale gas mining costs and oil prices. Put it simply, it is a more economical option to mine shale gas for chemical purposes when the oil price is above $ 50 per drum. Over the past few years, the demand of shale gas pipe industry has decreased from peak season, since the oil prices stays low. But with the agreement being reached in OPEC, oil prices began to move up all the way. In recent two years, crude oil prices are around 60 US dollars /drum, and combined with continuous breakthrough in shale gas mining technology, the balance point has now come to 30 US $ / drum, helping the recover of shale pipe industry in 2016 and 2017. The market rebounded obviously and TPU consumption began to increase.

data source : orisage

This year, shale trachea industry has recovered a lot. The TPU consumption of is basically around 6,000 tons, but compared with its peak consumption, there is still a gap of nearly 4,000 tons.

The recovery of shale trachea industry has hindered the development of TPU pipe market. As OPEC may prolong the production-cutting agreement, the crude oil price won’t go downward temporarily. Since the shale gas exploitation is also a relatively hot industry. TPU shale gas pipe will also get developed. As the environmental protection policies tightened, the exploration of shale gas will be an long-term strategy. Under the guidance of polices, it is believed that shale gas pipes will move into growth period in the next few years.


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